World Kinect (WKC) risk factors, FY2024 10-K

Strategic & Operational Risks

1. 01We extend credit to many of our customers in connection with their purchase of fuel and services from us, and our business, financial condition, results of operations and cash flows will be adversely affected if we are unable to collect accounts receivable
2. 02Changes in the market prices of energy and commodities may have a material adverse effect on our business
3. 03advances affecting energy consumption or supply; regulatory changes in commodities markets; and extreme weather and other natural disasters
4. 04Conditions and events affecting the aviation, marine and land transportation industries can affect our business
5. 05Our operations are subject to business interruptions and casualty losses
6. 06other releases; severe damage and destruction of property and equipment; and loss of product and business interruption
7. 07Information technology failures and data security breaches, including as a result of cybersecurity attacks, could negatively impact our results of operations and financial condition, subject us to increased operating costs, and expose us to litigation
8. 08Our derivative transactions with customers, suppliers, merchants and financial institutions expose us to price and credit risks, which could have a material adverse effect on our business
9. 09We are exposed to various risks in connection with trading activities and our use of derivatives, which could have a material adverse effect on our results of operations
10. 10If we fail to provide products or services to our customers as agreed, it could adversely affect our business
11. 11We may be unable to successfully integrate our acquisitions or fully realize the anticipated benefits of our acquisitions and other strategic transactions
12. 12Our sales to government customers subject us to additional risks
13. 13Some of our workforce is unionized, and we may face labor disruptions and cost increases that adversely affect our business

Financial, Economic & Market Risks

1. 14Economic, political and other risks associated with international sales and operations could adversely affect our business and future operating results
2. 15Our business depends on our ability to adequately finance our capital requirements and fund our investments, which, if not available to us, would impact our ability to conduct our operations
3. 16Our business is subject to seasonal variability, which can cause our financial results to fluctuate and can adversely affect the market price of our shares
4. 17A material impairment of our goodwill or intangible assets could reduce our earnings or adversely impact our results of operations
5. 18Significant inflation and higher interest rates may adversely affect our business and financial condition
6. 19We face intense competition and, if we are not able to effectively compete in our markets, our revenues and profits may decrease
7. 20We are subject to counterparty risk with respect to the bond hedge transactions which serve to mitigate the dilutive impact of our Convertible Notes

Legal & Regulatory Risks

1. 21Climate change and the market and regulatory responses relating to GHG emissions could have a significant impact on our business operations and financial results
2. 22Changes in U.S. or foreign tax laws or adverse outcomes from governmental challenges to our tax position could adversely affect our business and future operating results
3. 23Increasing attention to environmental, social and governance issues, including those related to climate change and sustainability, may increase our costs and impose difficult and expensive compliance requirements
4. 24Our business is subject to extensive laws and regulations, including environmental protection, health and safety, that can result in material costs and liabilities
5. 25The data that we collect may be vulnerable to cybersecurity incidents, breach, loss or misuse, and our handling of such data may be impacted by changes in data privacy and protection laws and regulations, which could increase operational costs or result in regulatory penalties or litigation
6. 26Our international operations subject us to international trade control, anti-money laundering and anti-corruption laws that can impose substantial compliance costs and expose us to civil and/or criminal penalties

General Risks

1. 27We face various risks related to pandemics, epidemics and other outbreaks of infectious disease, which may adversely affect our business, results of operations and financial condition